USM - UScellular and TDS Announce Sale of Wireless Operations and Select Spectrum Assets to T-Mobile for Approximately $4.4 Billion in Cash and Assumed Debt | Benzinga
T-Mobile, after acquiring UScellular's wireless operations and customers, will use its greater resources to deliver benefits to UScellular customers, including lower prices, more robust plans, superior network experiences, and more added benefits
T-Mobile to enter into new MLA and be a long-term tenant on at least 2,600 of UScellular's towers
UScellular retains its nearly 4,400 owned towers, its equity method investments, and approximately 70% of spectrum assets
UScellular and TDS to hold conference call at 8:30 a.m. Central Time
CHICAGO, May 28, 2024 /PRNewswire/ -- United States Cellular Corporation ("UScellular") (NYSE:USM) and Telephone and Data Systems, Inc. ("TDS") (NYSE:TDS) today announced they have entered into a definitive agreement to sell UScellular's wireless operations and select spectrum assets to T-Mobile for a purchase price of $4.4 billion, including a combination of cash and up to approximately $2 billion of assumed debt. Under the terms of the agreement, T-Mobile will acquire UScellular's wireless operations and approximately 30% of spectrum assets across several spectrum bands. In addition, T-Mobile will enter into a new master license agreement ("MLA") on more than 2,000 towers. The agreement follows a thorough strategic review process announced in August 2023 and has been unanimously recommended by the independent directors of UScellular and unanimously approved by the boards of directors of both UScellular and TDS, an 83 percent shareholder of UScellular.
Lower Prices, Faster Speeds, and More Reliable Performance on T-Mobile's Nationwide 5G Network Committed to Serving Rural Americans
T-Mobile's purchase and integration of UScellular's wireless operations will provide more competitive choices for UScellular customers, as they will benefit from T-Mobile's greater resources and ability to provide lower prices, more robust plans, and a better network experience. Access to T-Mobile's 5G network, enhanced by UScellular's spectrum and tower assets, will provide immediate value to UScellular customers through better coverage, speed and access to T-Mobile's "Un-carrier" benefits including content offers, additional savings for seniors and robust customer service options.
"For over 40 years, UScellular has delivered on its mission of connecting people to what matters most, and this transaction will ensure customers have access to the level of service they deserve," said LeRoy T. Carlson, Jr., Chair of the Board of Directors of UScellular. "In the face of rising competition and increasing capital intensity required to keep pace with the latest technologies, and following our careful and deliberate strategic review, we are confident that continuing to deliver on our mission requires a level of scale and investment that is best achieved by integrating our wireless operations with those of T-Mobile. T-Mobile has the resources to provide UScellular's customers with an unparalleled network experience, lower prices and higher-quality services. We are pleased that T-Mobile also shares our commitment to bringing best-in-class connectivity to rural Americans, who today comprise nearly 40% percent of the population that UScellular serves."
"The decisions we announced today are in the best interests of our customers and our shareholders. T-Mobile is the right partner for our wireless operations and will ensure that customers have access to best-in-class wireless speeds and performance, including 5G and a nationwide network, at compelling prices," said Laurent Therivel, Chief Executive Officer of UScellular. "We are committed to serving the needs of our customers and supporting our associates as we work to complete the transaction."
"This deal will create opportunity for T-Mobile to bring millions of UScellular customers lower prices and the Un-carrier's superior value on our best-in-class nationwide 5G network, offering much needed choice and more real competition across the wireless industry," said Mike Sievert, CEO of T-Mobile. "Bringing together UScellular's network resources with ours will enable us to fill gaps in connectivity that will create a better experience for all of ...